Current Ratio Calculator
Calculate the current ratio to assess a company's ability to pay short-term obligations.
Current Assets
$50,000
$0$1,000,000
$75,000
$0$1,000,000
$100,000
$0$1,000,000
$25,000
$0$500,000
Current Liabilities
$60,000
$0$1,000,000
$40,000
$0$500,000
$25,000
$0$500,000
Current Ratio
2.00
Good liquidity position
Quick Ratio
1.00
Excludes inventory
Cash Ratio
0.40
Most conservative
Current Assets
$250,000
Current Liabilities
$125,000
Working Capital
$125,000
Current Assets - Current Liabilities
Asset Composition
Cash20.0%
Receivables30.0%
Inventory40.0%
Benchmark Guide
Below 1.0Poor liquidity
1.0 - 1.5Adequate
1.5 - 2.0Healthy
Above 3.0Excess liquidity
Current Ratio Formula
Current Ratio = Current Assets / Current Liabilities
What It Measures
The current ratio measures a company's ability to pay short-term obligations due within one year using current assets.
Industry Variation
Acceptable ratios vary by industry. Retailers may operate with lower ratios, while manufacturers typically need higher ratios.